Which of the following is true of X efficiencies?
A)They result from diseconomies of scope.
B)They are difficult to pin down in a quantitative fashion.
C)They result from diseconomies of scale.
D)They are a direct result of significant economies of scope.
E)They are a direct result of significant economies of scale.

Question

Quizplus · Accepted Answer

X efficiencies are often difficult to measure quantitatively, as they refer to the intangible benefits that a firm gains from having a diverse range of products or services. They result from economies of scope, which allow a firm to leverage its resources and capabilities across multiple product lines. However, they are not a direct result of significant economies of scale, nor do they result from diseconomies of scope or scale.

Which of the Following Is True of X Efficiencies